The document summarizes Prime Carbon's Soil Enhancement and Carbon Sequestration program, which aims to address climate change through increasing soil carbon levels. The voluntary program pays landholders for adopting practices like reduced tillage and fertilizer use that promote carbon capture in soil. Measurements verify increased soil carbon over 2 years, generating tradeable carbon credits which Prime Carbon brokers for profit sharing between landholders and the company. The multiple environmental and agricultural benefits of soil carbon sequestration are noted.

1. Prime Carbon Soil Enhancement and Carbon Sequestration Program

3. A message from Professor Tim Flannery 2007 Australian of the Year and Chair of the Copenhagen Climate Council Tim Flannery 19th May, 2008 “ Regardless of what happens to emissions in the future, there is already far too much greenhouse gas in the atmosphere. Cutting emissions is not enough. Mankind now has to take greenhouse gases out of the air.” "The current burden of greenhouse gas in the atmosphere is in fact more than sufficient to cause catastrophic climate change. It's extremely urgent."

4. A message from Professor Tim Flannery 2007 Australian of the Year and Chair of the Copenhagen Climate Council Tim Flannery 30th October, 2008 at the Carbon Market Conference Broadbeach “ within 15 years we could see our first iceless winter unless action is taken to address the legacy emissions currently in the atmosphere ”.

5. Why Carbon Soil Sequestration is the answer What would an iceless world mean? If all of the Antarctic ice melted, sea levels around the world would rise about 61 meters (200 feet). If all of the ice covering Greenland melted sea levels would rise about 6 or 7 meters (20 feet). If all of the Antarctic ice melted, sea levels around the world would rise about 61 meters (200 feet). If all of the ice covering Greenland melted sea levels would rise about 6 or 7 meters (20 feet). If all of the Antarctic ice melted, sea levels around the world would rise about 61 meters (200 feet). If all of the ice covering Greenland melted sea levels would rise about 6 or 7 meters (20 feet). If all of the Antarctic ice melted, sea levels around the world would rise approximately 61 metres (200 feet). If all of the ice covering Greenland melted sea levels would rise between 6 and 7 metres (20 feet).

6. Why Carbon Soil Sequestration is the answer 10 20 30 40 50 Years Soil Forests Clean Coal Nuclear Wind Solar The World has 10 Years to do something serious about Global Warming- STERN REPORT / NASA QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. Why Soil Carbon Sequestration is the solution Slide courtesy of Michael Kiely

7. Why Carbon Soil Sequestration is the answer What does Soil Carbon Sequestration Mean? Soil Carbon Sequestration simply means the capture of carbon—generally from the air – and the return of this carbon back into the soil. In reality this happens continually in all sorts of ways. However, one of the most important methods is by photosynthesis.

10. About Prime Carbon

12. Broker of Carbon Credits 2. We then act as a wholesale broker and sell these Carbon Credits to emitting companies. Carbon Credits issued by Prime Carbon are listed on the National Environment Registry (NER) Prime Carbon is registered as a broker with the National Stock Exchange (NSX) and in this capacity Prime Carbon is able to sell/trade the carbon credits .

13. What is a Carbon Credit A carbon credit is a commercial term used to assign a value to a metric tonne of greenhouse gas emissions. Carbon credits are measured in tonnes of carbon dioxide, where 1 credit = 1 tonne of CO 2 . The Prime Carbon Program forecasts that soil carbon will increase by 1% over a 2 year term. A 1% increase equates to the removal of 15 tonnes of Carbon from the atmosphere per hectare. This equates to 55 Carbon Credits per hectare.

14. About the Program The Program has been operational since July, 2008. Seven Landholders are currently under contract representing 900 hectares/50,000 carbon credits. We are in final negotiations with a further 4 Landholders representing 14,500 hectares/800,000 carbon credits. Our first sale of carbon credits within Australia was completed in September and we are currently negotiating our first international sale.

17. Consumer Pay for "Permits" to pollute ... + GST GST 10% "100% of the money" Goes to households and businesses Cost of everything goes up From 2015 the majority of Emissions "NOT ALLOWED" The money cycle for 60% of Australia’s Emissions 1000 Top Polluters Two main reasons why Soil Carbon should be included In the Carbon Trading Discussion

18. Two main reasons why Soil Carbon should be included in the Carbon Trading discussion 473 m t 410 m t The Not Allowed and Forgotten emissions will cost Aust $8.8b pa in 2010 rising to $22 b pa in 2050 2008 2010 2015 2008 Aust Emissions Deficit = 630 Million Tonnes Per Annum “ Allowed” and covered by Pollution Permits 2050 10% or 63 m t 75% 65% Cap Target for ETS: Permits issued to reduce to 10% by 2050? 50% Best Possible reduction by ETS Companies from Efficiency and Abatement (30% of current emissions) “ Not Allowed” Only o ptions are Penalties, JI’s or CDM’s Forgotten 63 Million Tonnes pa in 2010 rising to 252 Million Tonnes pa in 2050 158 Million Tonnes rising to 315 Million Tonnes IF WE HAVE NO GROWTH IN ACTIVITY AT ALL Proposed ETS Capture level

20. What is the likelihood of Soil Carbon Sequestration being included within a Compulsory Scheme ? The likelihood of Soil Carbon Sequestration being included in a compulsory scheme for carbon management is directly related to the co-benefits of Soil Carbon Sequestration. Soil Carbon deals with the IMPACTS of climate change not just the REDUCTION of EMMISSIONS

27. Financial Example Total Hectares under the Agreement 1000 Listing Price Per Credit Unit $8.00 Rate of Commission Payable on Sale of Credit Units 1.00% Estimated Measurement/Verification Costs per Credit Unit $0.23 Estimated Predicted Credit Units per Hectare 55 Estimated Number of Credit Units Generated 55000 Estimated Total Value of the Credit Units $440,000.00 Deposit: $0.20 per Credit Unit $11,000.00 Estimated total costs associated with Measurement/Verification costs $12,650.00 Balance Fee: $0.25 per Credit Unit $13,750.00 Value of Commission Payable on Sale of Credit Units $4,400.00 Estimated Gross Profit if all Credit Units are Sold $398,200.00 How funds are distribution if all Credit Units are sold Initial allocation of up to 15% paid to the Landholder $66,000.00 Broker Commission is paid to Prime Carbon $4,400.00 Balance fee is paid to Prime Carbon ($0.25 per Credit Unit) $13,750.00 Final Distribution is paid to the Landholder (min 1% increase in soil carbon) $355,850.00 Total Distributed $440,000.00

28. Not a Cash Crop Land contracted under this Program can only be used once for the general of soil carbon credits. The land details are recorded with the NER. This is not a cash crop that will generate profits for Landholders repeatedly. It is a once only program.

31. Other Programs Will Prime Carbon expand it’s offering in the future to include other programs that result in Carbon Soil Sequestration or that reward the generation of co-benefits? We are interested and keen to expand our offering ... However at this early stage our focus is solely on our current “Soil Enhancement and Carbon Sequestration Program”.

32. Summary The legacy emissions currently in the atmosphere must be addressed. Carbon Soil Sequestration provides a simple and practical solution to address the legacy emissions together with addressing the impact of Climate Change.

33. Summary Soil Carbon Sequestration is not only a simple and practical solution but it is also a win win solution ...... as it benefits: Landholders ..... By improving their soil, their produce and their profits whilst contributing to a cleaner greener sustainable world. Companies ... By economically offsetting their carbon emissions whilst supporting Australian Farmers. The Environment ...By improving soil and water quality The Economy ... By providing an economically viable and politically acceptable method to offset Australia’s carbon emissions The Community ... By working together with communities and developing initiatives to support a sustainable future.

34. Summary If we all work together to increase the Federal Government's awareness of the benefits of Soil Carbon Sequestration .... Soil Carbon Sequestration may be included as offsets in a Compulsory Emissions Trading Scheme.

36. Contact us Prime Carbon Pty Ltd P: 07 4772 5431 F: 07 4772 6064 E: [email_address] W: www.primecarbon.com.au Address: No 4 The Strand Townsville Qld. 4810 PO Box 5600 Townsville. Qld 4810